On September 18, 2019, TEI filed comments with the United States Department of the Treasury and Internal Revenue Service regarding proposed regulations issued under section 951A. New section 951A, added to the Internal Revenue Code by the Tax Cuts and Jobs Act (TCJA), imposes a new tax on global intangible low-taxed income (GILTI). The Institute’s comments supported the proposed regulations’ approach to providing an exception to GILTI for income subject to high foreign taxes (the GILTI high-tax exception). TEI’s comments also recommended various changes to the proposed regulations’ high-tax exception, including making it retrospective and providing parity with the foreign base company high-tax exception under subpart F of the Code.
TEI’s comments were prepared under the aegis of the Institute’s Tax Reform Task Force and U.S. International Tax Committee. Benjamin Shreck, TEI Tax Counsel, coordinated the preparation of TEI’s submission.